Buyer-supplier Relationships Research Articles

The Influence of Digital Innovation and Reputation on Buyer-Supplier Relationship Mediated by Supply Chain Flexibility

This research aims to determine and analyze the influence of digital innovation and reputation on the buyer-supplier relationship mediated by supply chain flexibility. Empirical study: PT vendors. Astra Daihatsu Motor. The method used in this research is quantitative research. The population in this research is the buyer-supplier of the Automotive Manufacturing Company Vendor PT. Astra Daihatsu Motor. The sample required for this research is around 222 respondents from 500 employees. So, the research results show that digital innovation positively impacts buyer-supplier relationships and supply chain flexibility. Likewise, company reputation also has a positive influence on these two variables. In addition, the results of the analysis show that supply chain flexibility mediates the relationship between digital innovation/reputation and buyer-supplier relationships. The practical implication of this research is the importance of investing in digital innovation and maintaining a company's reputation to strengthen business relationships and increase flexibility in dealing with changing markets and customer needs. This research provides insight for managers in managing supplier relationships, improving their supply chain performance through technology, and building a strong reputation.

Estimating the loss of economic predictability from aggregating firm-level production networks.

To estimate the reaction of economies to political interventions or external disturbances, input-output (IO) tables-constructed by aggregating data into industrial sectors-are extensively used. However, economic growth, robustness, and resilience crucially depend on the detailed structure of nonaggregated firm-level production networks (FPNs). Due to nonavailability of data, little is known about how much aggregated sector-based and detailed firm-level-based model predictions differ. Using a nearly complete nationwide FPN, containing 243,399 Hungarian firms with 1,104,141 supplier-buyer relations, we self-consistently compare production losses on the aggregated industry-level production network (IPN) and the granular FPN. For this, we model the propagation of shocks of the same size on both, the IPN and FPN, where the latter captures relevant heterogeneities within industries. In a COVID-19 inspired scenario, we model the shock based on detailed firm-level data during the early pandemic. We find that using IPNs instead of FPNs leads to an underestimation of economic losses of up to 37%, demonstrating a natural limitation of industry-level IO models in predicting economic outcomes. We ascribe the large discrepancy to the significant heterogeneity of firms within industries: we find that firms within one sector only sell 23.5% to and buy 19.3% from the same industries on average, emphasizing the strong limitations of industrial sectors for representing the firms they include. Similar error levels are expected when estimating economic growth, CO2 emissions, and the impact of policy interventions with industry-level IO models. Granular data are key for reasonable predictions of dynamical economic systems.

The Delicate Equilibrium: Unveiling the Curvilinear Nexus Between Supply Concentration and Organizational Resilience

AbstractThe ability of organizations to remain resilient in the face of supply chain disruptions has been severely tested due to their increased frequency and impact. This study leverages the adaptive cycle framework to investigate the intricate dynamics between supply concentration and organizational resilience. We unveil a paradox where, up to a critical threshold, supply concentration fortifies resilience through tight‐knit buyer–supplier relationships and a bolstered resource base. Yet, surpassing this tipping point precipitates a rigidity trap, eroding the resilience fabric of organizations. Additionally, we scrutinize the nuanced roles of three dimensions of entrepreneurial orientation – proactiveness, innovativeness and risk‐taking – in shaping this complex interplay. We test our hypotheses using both secondary and primary data collected from Chinese firms, employing ordinary least‐squares regression and survival analysis. The results show that an inverted U‐shaped relationship emerges between supply concentration and organizational resilience. Furthermore, our research generally confirms the conjectured moderating influences of entrepreneurial orientation dimensions, enriching our understanding of how they calibrate the balance between concentration benefits and vulnerabilities. This study offers a new perspective on the implications of supply concentration for organizational resilience and contributes to the intersection of supply chain management, organizational resilience and entrepreneurship.

Sustaining commitment in preferred buyer-supplier relationships: How to retain the ‘customer of choice’ status?

Securing commitment and preferential treatment from suppliers is crucial for buying firms in a competitive marketplace. This study delves into the dynamics of how buying firms, which have already earned preferential treatment and thus already had been recognized as preferred customers or ‘customers of choice,’ can sustain supplier commitment and preserve this coveted status in a competitive market. Anchoring our investigation into the foundational principles of transaction cost economics and social exchange theory, we offer a novel theoretical perspective by examining the interplay of buyer behaviors and attributes, including supplier development and involvement, information sharing, market attractiveness, operative excellence, importance for the supplier's business, and relationship continuity expectations. To gain insight into these dynamics,we analyze primary survey data from 215 strategic buyer-supplier dyads through structural equation modeling. Our analysis reveals that supplier development and involvement directly fosters sustained commitment. Intriguingly, the role of information sharing is found to have asignificant impact as well, albeitindirectly, mediated through the buyer's characteristics. Additionally, while supplier development, involvement, and information sharing positively influence expectations regarding relationship continuity, a similar mediating effect on sustained commitment is absent. By further employing Fuzzy Set Qualitative Comparative Analysis, our study uncovers three distinct configurations that buyers can leverage to sustain supplier commitment and secure their ‘customer-of-choice’ status. These findings extend the theoretical understanding of buyer-supplier collaboration dynamics and provide practical insights for buyers striving to enhance the value and longevity of their supplier relationships.

Determinants of Supply Chain Performance in the Energy Sector in Kenya: A Case Study of the Kenya Power.

The current supply chain management in Kenya energy sector is deficient of an acceptable SCM performance level due to the inability to connect every willing buyer, and the cost of rural electrification by grid development due to dispersion as is expected in the service charter. The general objective of the study was to establish the determinants of supply chain performance in the energy sector in Kenya with an inclination to KPLC. The specific objectives of the study were to; determine the effect of information communication technology on supply chain performance of KPLC; examine the effect of buyer-supplier relationship on supply chain performance of KPLC; determine the effect of procurement professionalism on supply chain performance of KPLC and establish the effect of contract management on performance of KPLC. The study employed a descriptive research design. The researcher used stratified random sampling technique. The study population was 698 employees working in KPLC from which 254 respondents were selected. Questionnaires were used as the main data collection instrument and a pilot study was undertaken to pretest the questionnaires for validity and reliability. For the purpose of analyzing the data that was gathered, and the Statistical Package for Social Sciences Version 24 was utilized in analysis. In order to establish the statistical link between the independent factors and the predicted variable, the study made utilization of the regression model. Descriptive statistics were computed whereby frequencies, percentages and means were clearly shown in the form of both tables and figures. The study revealed that a unit increase in the elements of information communication technology, procurement professionalism, buyer-supplier relationship and contract management will translate to improvement of supply chain performance in KPLC. the study recommends that KPLC and other firms in the energy sector should exploit the aforementioned determinants in a hierarchical order. This would enable KPLC and other firms in the energy sector to focus on the determinants with the most positive significant effect on supply chain performance and prioritize resources allocation and deployment appropriately. The study recommends this order, buyer-supplier relationships, followed by contract management while information communication technology and procurement professionalism should be exploited concurrently.

Affect-based dimensions of trust: a study of buyer-supplier relationships in Thai manufacturing

PurposeTrust is an important facilitator of successful B2B relationships. The purpose of this study is to investigate affect-based antecedents of both interpersonal and interorganizational trust, and their impact on the performance of buyer–supplier relationships. The authors ask two research questions: (1) What are affect-based dimensions of interpersonal and interorganizational trust? (2) How do interpersonal and interorganizational trust influence buyers’ operational performance?Design/methodology/approachThe authors use data from an original survey of 156 buyer–supplier relationships between multinational enterprise subsidiaries and local suppliers in the Thai manufacturing sector to develop a structural model in which the authors test the hypotheses.FindingsConsistent with social exchange theory and social psychology, the empirical analysis shows that affect-based dimensions at the individual level, namely, likeability, similarity and frequent social contact, and at the organizational level, namely, supplier firm willingness to customize and institutionalization of cooperation, are important for establishing trust. In addition, interpersonal trust enhances buyers’ operational performance indirectly via interorganizational trust.Practical implicationsBuying and selling firms may develop organizational trust by developing processes that enhance organizational trust. Individuals with purchasing or sales responsibilities may enhance trust in their personal relationship. However, such interpersonal trust needs to be translated to the organizational level to benefit organizational performance.Originality/valueThe findings contribute to the literature on affect-based antecedents and outcomes of trust. Specifically, the authors offer theory and empirical evidence regarding the contribution of salespersons toward affect-based dimensions of trust and its impact on buyer’s operational performance.

Vulnerability to geopolitical disruptions of the global electric vehicle lithium-ion battery supply chain network

In the rapidly expanding global electric vehicle lithium-ion battery supply chain network (EV LIB SCN), intricate intercontinental and interrelated connections render it susceptible to geopolitical disturbances. The complex supplier–buyer dynamics within this network facilitate the propagation of disruptions, complicating the identification and evaluation of the consequences of geopolitical disruptions. Existing recommendations, grounded in macro-level material flow data, offer limited guidance for EV LIB-associated enterprises in managing such disruptions. To address this gap, this study constructs a meso-level EV LIB SCN incorporating realistic supplier–buyer relationship data among relevant firms. A supply chain network vulnerability (SCNV) index has been designed to quantify the disruption impact. Furthermore, a geopolitical disruption diffusion (GDD) model has been developed to simulate the disruption propagation in two distinct scenarios, i.e., single-region blockade and inter-region blockade. This study broadens the scope of EV LIB SCN investigations from macro- to meso-level analyses, and the evaluation of both direct and indirect impacts of geopolitical disruptions enhances comprehension of geopolitical disruption risks in global supply chain networks.

Curbing relationship conflict for achieving green customer integration: roles of organizational commitment and influence strategy

PurposeThis study aims to investigate how relationship conflict (RC) hinders green customer integration (GCI) and which strategy could be developed to alleviate the negative effect of RC.Design/methodology/approachThe authors use a sample of 206 Chinese firms to examine hypothesized relationships drawing on social exchange theory and buyer-supplier relationship perspective. Methods including exploratory factor analysis and confirmatory factor analysis are used to assess reliability and validity. Hypotheses are tested using hierarchical regression analysis. Post hoc analysis is adopted to evaluate the robustness.FindingsThe results show that RC negatively relates to GCI. Normative commitment partially mediates the relationship between RC and GCI, while the mediating role of instrumental commitment is insignificant. In addition, coercive influence strategy positively moderates the RC-normative commitment and RC-GCI relationships.Research limitations/implicationsWhile this study clarifies the mechanism of how RC impedes GCI and how to address RC in buyer-supplier relationships, it could be more meaningful to extend the current research and figure out how to address RC in different supply chain relationships. Besides, it will make sense to conduct longitudinal studies and explore the dynamic nature of RC in supply chain relationships.Practical implicationsIn practice, firms find it challenging to achieve GCI owing to the ubiquitous existence of RC. The findings reveal that RC detriments GCI partially through normative commitment, and the use of coercive influence strategy mitigates the detriments of RC. Thus, the authors provide solutions for firms to address RC for achieving GCI.Originality/valueRC is unavoidable in organizational interactions. Prior studies have not revealed the processes through which RC relates to GCI. The authors bridge the gap by exploring the mediating role of organizational commitment and the moderating role of influence strategy, which offers a better understanding of how RC is associated with GCI, and add knowledge of addressing RC for achieving GCI.

Sustainability isomorphism in buyer–supplier relationships: The impact of supply chain leadership

AbstractWithin the framework of institutional theory, this study explores how the proactiveness of focal (or buying) manufacturing firms, demonstrated through the adoption of various sustainability practices, influences the sustainability performance of suppliers. Additionally, it examines how the leadership capability of buying firms, particularly in terms of supply chain leadership, can play a crucial role in this link. Through empirical analysis of a sample taken from the fourth round of the High‐Performance Management (HPM) project, our study reveals compelling evidence indicating that buying firms, by adopting diverse sustainability practices, such as internal initiatives, monitoring efforts and collaborative approaches with suppliers, are able to create distinct institutional pressures. These pressures serve as a conduit for the diffusion of a shared set of sustainability goals, values and norms among suppliers, ultimately contributing to the development of sustainability competences and improving their overall sustainability performance. Furthermore, our findings suggest that when buying firms undertake a leading position, they can effectively translate isomorphism pressures into sustainability improvements on the supplier side. Overall, this study sheds light on important and understudied aspects of sustainability practices in buyer–supplier relationships and underscores the critical role that supply chain leadership can play in promoting sustainable practices across the entire supply chain.

Examining the dynamics of bargaining power in buyer-supplier negotiations: insights from a case study in the German automotive industry

ABSTRACT Buyer-supplier negotiations play a central role in supply chain networks regulating the conditions for the exchange of goods. This paper investigates the relationships between influencing factors and their impact on bargaining power. In a multiple case study, we triangulate secondary data from 12 German automotive suppliers. Following a structural equation modelling approach, bargaining power and the effects of those influencing variables are analysed. Four relationships can be found. (1) The availability of internal resources and the existence of strong buyer-supplier relationships have a positive effect on bargaining power. (2) A positive influence of buyer-supplier relationships on gaining access to internal resources can be identified. (3) External market conditions have a small negative effect on bargaining power. (4) No significant effect can be found looking at the impact of external market conditions on internal resources or buyer-supplier relationships. The findings support theory by showing that internal resources and strong buyer-supplier relationships positively influence bargaining power. Based on these results, managers are advised to prioritise strategic resource allocation, implement win-win strategies, and employ benchmarking techniques to enhance competitiveness and strengthen bargaining positions.

Digitalization of BSR in the recession

Digitalization of BSR (buyer supplier relationship) is generally one of the effective tools to strengthen the supply chain. This study aims to establish the correlations between the perceived importance of BSR, investment in BSR digitalization and ER (economic result) change. Data collecting was realized in the form of a questionnaire survey. This survey was carried out in Czech enterprises of different focuses and sizes. Hypotheses are tested using Pearson's Chi-squared test. The study confirmed that correlation between the perceived importance of BSR and investment to BSR digitalization is stronger for producers than for service providers. The investment in BSR digitalization brings about ER development in the short term only for services providers. Enterprises do not associate the development of ER and the importance of BSR. BSR is considered an important area as part of the SCM whole, but ER development is not associated with this area, nor does investment in this area have a clear economic effect in a recession. Thus, the logical triad of "importance of the process- investment in process development – process effect" is unprovable in the case of BSR digitalization in a recession.

A Market Value Analysis of Buyer–Supplier Relationship Building Awards

The purpose of this article is to study the signaling potential of “supplier awards” in creating shareholder value for the award-giving and the award-receiving firm. We use event study methodology with supplier awards as events that signal mutually beneficial buyer–supplier relationship (BSR) efforts to estimate the firm value generated from these efforts. Supplier awards, apart from being a supplier development (SD) activity in themselves, are also a signal of a mutually beneficial relationship between a buyer and a supplier. This article performs a deep study by investigating the impact of traits, such as award exclusivity and award satiation, on the efficacy of supplier awards as a signaling mechanism. We find that shareholders of firms that give awards (buyers) and those of firms that receive awards (suppliers) react positively to such events, thereby establishing the signaling potential of supplier awards that signal the mutually beneficial BSR and SD efforts. We find that a more exclusive award has a higher positive impact on the buyer's shareholders. We also find that there is a higher impact on the supplier's market value when that supplier receives awards less frequently. This article pioneers a study of interorganizational awards that considers traits, such as exclusivity and award satiation, that are not frequently studied in extant research.

Board Gender Diversity and Buyer-Supplier Relationships

Board Gender Diversity and Buyer-Supplier Relationships

Exploring the impact of electronic procurement on buyer-supplier relationship in the Jordanian pharmaceutical industry: an empirical study

Exploring the impact of electronic procurement on buyer-supplier relationship in the Jordanian pharmaceutical industry: an empirical study

The role of supplier-buyer relationship in enhancing business performance through supply chain management practice, total quality management implementation and product innovation

The Company should collaborate with supply chain members to support business process activities and increase competitiveness. Company collaboration with suppliers is essential in supporting the adoption of supply chain practices and total quality management to pursue product innovation and enhance business performance. This study investigates the role of supplier-buyer relationships in enhancing business performance through supply chain management practice, total quality management, and product innovation. The research surveyed 150 companies implementing total quality management with ISO certification in East Java. Data processing employs partial least squares using SmartPLS software version 4.0. The research found that supplier-buyer relationships positively and significantly influence supply chain practice by 0.800, total quality management by 0.438, and product innovation by 0.293. The company's ability to implement supply chain practices positively affects total quality management by 0.443, product innovation by 0.206, and business performance by 0.263. Total quality management adopted by manufacturing companies by obtaining ISO certification has an impact on increasing product innovation by 0.412 and business performance by 0.276. The company's ability to build a supply chain strategy to produce innovative products affects business performance by 0.446. The research results contribute practically to managers who build coordination with supply chain members, especially purchasing and marketing managers, to be able to read the capabilities and advantages of external partners to be communicated internally in the company—theoretical contribution in enriching supply chain strategy theory in increasing competitiveness.

A comparison of the importance of wine supplier quality attributes for on-premise and off-premise wine retail establishments

PurposeGiven the intensified competitiveness in the wine retail industry, partnering with quality suppliers becomes critical to ensure a steady supply of high-quality products and sustainable business growth. This study aims to explore how wine supplier quality attributes impact wine retail businesses and if such effects differ depending on wine retail types.Design/methodology/approachData were obtained from wine purchasing managers in Korea. To validate the proposed relationships, structural equation modeling was used. A multigroup analysis was conducted to test distinct roles of on/off-premise wine retail types within this research framework.FindingsResults support the significance of supplier quality attributes in shaping the landscape of wine retail businesses. Operational and strategic benefits exhibited a positive effect on both financial performance and suppliers’ relationship satisfaction, thereby improving the intent to continue working with suppliers. This study revealed noteworthy distinctions in the effects of supplier quality attributes on operational and strategic benefits between on-premise and off-premise wine retailers.Research limitations/implicationsFindings provide valuable insights to wine suppliers and buyers concerning the establishment of a mutually beneficial long-term interdependent relationship. The approach sheds light on the unique dynamics of wine retail types, contributing to a more comprehensive understanding of the distinct roles of supplier quality attributes on on-premise and off-premise retailers.Originality/valueThis study developed an integrative framework, emphasizing the importance of supplier quality attributes in the wine retail industry. This model offers valuable insights into creating favorable buyer–supplier relationships that result in mutual benefits for both wine retailers and suppliers.

Validation of buyer-supplier relationship value dimensions - qualitative study-based evidence from the auto-component industry in India

Validation of buyer-supplier relationship value dimensions - qualitative study-based evidence from the auto-component industry in India

Antecedents of hidden action problems in the Egyptian automobile insurance market: buyer-supplier relationship perspective

Antecedents of hidden action problems in the Egyptian automobile insurance market: buyer-supplier relationship perspective

Business relationships in the context of ICT – a bibliometric review

TThe article aims at identifying the foundations of the current state of knowledge about business relationships in the context of ICT, the knowledge of which is necessary to further conduct in-depth, critical studies of the literature. For this purpose graphical bibliometric analysis was used. A relational technique, including the analysis of the co-occurrence of keywords and their clusters was applied, as well as the analysis of bibliographic connections in terms of authors and countries. The VOSviewer tool was used to analyse and graphically present the research results. The scientific database Scopus was searched to extract publications for the conducted study. The analysis of publications was narrowed down to the ones from the ABS (Association of Business School) list with a rating of 3 stars or higher. The key topics of business relationships in the context of ICT research include customer relationship management, ICT, supply-chain management, trust, and buyer-supplier relationships. The United States, the United Kingdom, and Taiwan are the dominant countries regarding the number of publications addressing the topic under study. The significant researchers in the field of business relations in the context of ICT include Kim D., Sinkovics R. R., Jean R.J.B., and Wang E.T.G. The article helps researchers understand the scope of research on business relationships in the ICT context. It presents changes in interest in critical topics in this field over the years, provides information about significant authors, and indicates countries where scientists research business relationships in the ICT context. Thus, it shows potential opportunities for establishing international scientific cooperation, attractive research topics, and areas of the latest exploration.

Interdependence in buyer–supplier relationships

Interdependence in buyer–supplier relationships